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Beefy Finance

Beefy Finance

Beefy Finance is a Decentralized, Multi-Chain Yield Optimizer platform that allows its users to earn compound interest on their crypto holdings.

What is Beefy Finance?

Beefy Finance is a Decentralized, Multi-Chain Yield Optimizer platform that allows its users to earn compound interest on their crypto holdings.

Through a set of investment strategies secured and enforced by smart contracts, Beefy Finance automatically maximizes the user rewards from various liquidity pools (LPs), automated market making (AMM) projects, and other yield farming opportunities in the DeFi ecosystem.

The main product offered by Beefy Finance are the 'Vaults' in which you stake your crypto tokens. The investment strategy tied to the specific vault will automatically increase your deposited token amount by compounding arbitrary yield farm reward tokens back into your initially deposited asset. Despite the name 'Vault' suggests, your funds are never locked in any vault on Beefy Finance: you can always withdraw at any moment in time.

DeFi applications are unique in the sense that they are permissionless and trustless, meaning that anyone with a supported wallet can interact with them without the need for a trusted middleman. While you have funds staked in a vault, you remain 100% in control of your crypto.

What is $BIFI?

$BIFI tokens are 'dividend-eligible' revenue shares in Beefy Finance, through which holders earn profits generated by Beefy Finance and are entitled to vote on important platform decisions.

For all the vaults deployed on every blockchain, Beefy Finance has its native governance token $BIFI at its core. Platform revenue is generated from a small percentage of all the vault profits and distributed back to those who stake $BIFI.

The revenue sharing mechanics entail you can stake $BIFI to either earn more $BIFI in a BIFI Maxi vault, or earn $ETH, $BNB, $FTM, $MATIC, $AVAX, $HT, $ONE, $CELO, $MOVR or $CRO in the native staking pools.

The supply of $BIFI is limited at 80,000 tokens and available on the top decentralized exchanges such as Binance, 1inchexchange and PancakeSwap.

For more details, please refer to the official Beefy Finance documentation: https://docs.beefy.finance/moo/

What is Beefy Finance?

Through a set of investment strategies secured and enforced by smart contracts, Beefy Finance automatically maximizes the user rewards from various liquidity pools (LPs),‌ ‌automated market making (AMM) projects,‌ ‌and‌ ‌other yield‌ farming ‌opportunities in the DeFi ecosystem.

The main product offered by Beefy Finance are the 'Vaults' in which you stake your crypto tokens. The investment strategy tied to the specific vault will automatically increase your deposited token amount by compounding arbitrary yield farm reward tokens back into your initially deposited asset. Despite the name 'Vault' suggests, your funds are never locked in any vault on Beefy Finance: you can always withdraw at any moment in time.

DeFi applications are unique in the sense that they are permissionless and trustless, meaning that anyone with a supported wallet can interact with them without the need for a trusted middleman. While you have funds staked in a vault, you remain 100% in control of your crypto.

What is $BIFI?

$BIFI tokens are 'dividend-eligible' revenue shares in Beefy Finance, through which holders earn profits generated by Beefy Finance and are entitled to vote on important platform decisions.

For all the vaults deployed on every blockchain, Beefy Finance has its native governance token $BIFI at its core. Platform revenue is generated from a small percentage of all the vault profits and distributed back to those who stake $BIFI.

The revenue sharing mechanics entail you can stake $BIFI to either earn more $BIFI in a BIFI Maxi vault, or earn $ETH, $BNB, $FTM, $MATIC, $AVAX, $HT, $ONE, $CELO, $MOVR or $CRO in the native staking pools.

The supply of $BIFI is limited at 80,000 tokens and available on the top decentralized exchanges such as Binance, 1inchexchange and PancakeSwap.

What is Beefy Finance?

Beefy.finance is a yield optimization tool on Binance smart chain, that helps to maximize the return from yield farming.

Just to give you a better perspective, Bakerysoup.org is a yield farming platform, and so is Venus.io. You can farm directly using these two platforms, but when you use something like Beefy.finance or its alternative such as autofarm.network, you are basically optimizing and maximizing your yield farming effort automatically. How it is done, we will look into the further section of this guide.

A little background, one of the first aggregators in this ecosystem is Yearn Finance, which was also a great option for Yield Farming. But, Yearn Finance operates on the Ethereum Network whose transaction cost (Ethereum GAS fees) has skyrocketed in the recent past. As a lucrative alternative, Beefy Finance runs on Binance Smart Chain and with a lower transaction fee. This opens up doors for much more involved strategies that can rebalance frequently and use an increased number of transactions to maximize APY’s (more on APY later).

How a Yield is Optimised with Beefy Finance?

Beefy Finance optimizes yields through a vault system; vaults serve as investment instruments, which implement strategies through smart contracts.

These vaults automate the best yield farming opportunities for you.

A vault has the following functions:

  • Use crypto assets as liquidity,
  • Provide assets as collateral for others,
  • Manage collateral to reduce chances of liquidation,
  • Use assets to generate a yield and compound profits

I know it may be a lot for a newbie to digest, but once you start interacting with these DApps, you would start understanding better.

Why Do you need Beefy Finance?

A person can obviously do yield farming directly with platforms like Venus.io, Backeryswap.org or others, but vaults help you save on gas, maintain healthy collateral to debt ratios, self-optimize for the best possible yields, and automatically reinvest earnings.

With the above functions, vaults allow users to automate their De-Fi farming experience completely and optimize the returns in the best possible way.

What are the types of vaults available with Beefy Finance?
  • Money Market Vaults

Utilizes stable lending platforms, such as Fortube, to generate the highest possible yield for these coins (BUSD, LINK, DOT, DAI, USDT, ETH, or BTCB).

Takes advantage of the high yield on popular farms by depositing another asset to earn, sell and compound profits of the native reward token.

Native Token Farming

Takes advantage of the high yield on popular farms by depositing another asset to earn, sell and compound profits of the native reward token.

How much Fees does Beefy Finance Charge?
  • There is no deposit fee
  • The withdrawal fee is 0.1% of the withdrawal amount
  • Perfomance fee on additional yield - this fees varies and is mentioned on each vault bieng used
  • Call fee of 0.5% during each harvest
The Power of Compounding

Now let us understand how compounding through Beefy helps us with the optimization of our returns. Beefy vaults compound daily, and some vaults compound multiple times a day. These compound functions are integrated into the vault strategies.

Now, those of you who are not aware, compounding is the most powerful force that can help you with your wealth creation.

APR Vs APYAPR stands for Annual Percentage Rate and APY for Annual Percentage Yield. APR reflects the simple interest rate over a year’s time, while APY describes the rate with the effect of compounding.

This is a crucial difference to understand, as 1% compounded daily will result in a yield of 3678.34% per year.

What are the benefits of Beefy Finance?
  • Allows all users to become yield farmers effortlessly
  • Supports all popular wallets such as Trust Wallet, Metamask, Walletconnect
  • Frequent vault updates remove the need for decision making from an independent yield farmer regarding APY maximization
  • Users don't need to worry about manually compounding their funds daily or weekly

Thus, it automates the whole farming process. It's like a "Set and Forget" approach

Some of our concerns related to Beefy Finance
  • As of now, vaults have not been externally audited. So the platform can pose a risk to your investments. Investors are encouraged to DYOR before investing.
  • The team does take steps to quantify the security risks of smart contracts and only will interact with ones that meet a specific set of requirements. As with any smart contact, there is always a possibility for and investors's funds to end up stolen or unable to be withdrawn.
  • Assets deposited into the vault have no risk of decreasing in quantity but can decrease in monetary value. For example - depositing 10 BNB, you will always be able to withdraw 10 BNB, but BNB may decrease in monetary value during that period of time.
Conclusion

At last, Beefy Finance provides a very lucrative opportunity to automate your yield through its platform. Some of the yield options provide APY up to 650%.

From an investment point of view, a user may either invest now or can wait for an independent external audit which is expected to be done in the near future. This will generate more confidence amongst the users of the platform.

We hope we were able to add some value to your knowledge base about yield farming and compounding. Let us know in the comment box what do you think about yield farming and Beefy.Finance as a Yield Aggregator.

Note: Yield farming is a high risk aspect of crypto investing, and there are multiple risks associated with it. There were incidents of hacking, and oracle issues has happened in the past, and something you should be aware of. Invest only that amount which you are ok to loose. This guide is only for educational purpose and not intended as an investment advice.

Beefy.Finance is the multi-chain yield aggregator.

Beefy.Finance is an equivalent of Yearn.Finance, which is now a top aggregator on the Ethereum network. But only Beefy occupied a similar niche on the growing BSC network at the end of 2020.

At the moment, the project supports 12 networks:

  • Binance Smart Chain
  • Avalanche
  • HECO
  • Polygon
  • Fantom
  • Harmony
  • Arbitrum
  • Celo
  • MoonRiver
  • Cronos
  • Fuse
  • Metis

Beefy Finance is a Decentralized, Multi-Chain Yield Optimizer that allows its users to earn compound interest on their crypto holdings. Beefy earns you the highest APYs with safety and efficiency in mind.

Through a set of investment strategies secured and enforced by smart contracts, Beefy Finance automatically maximizes the user rewards from various liquidity pools (LPs),‌ ‌automated market making (AMM) projects,‌ ‌and‌ ‌other yield‌ farming ‌opportunities in the DeFi ecosystem.

The main product offered by Beefy Finance are the 'Vaults' in which you stake your crypto tokens. The investment strategy tied to the specific vault will automatically increase your deposited token amount by compounding arbitrary yield farm reward tokens back into your initially deposited asset. Despite the name 'Vault' suggests, your funds are never locked in any vault on Beefy Finance: you can always withdraw at any moment in time.

DeFi applications are unique in the sense that they are permissionless and trustless, meaning that anyone with a supported wallet can interact with them without the need for a trusted middleman. While you have funds staked in a vault, you remain 100% in control of your crypto.

How is Beefy organized?

Beefy is a decentralized working hub for people with a vision to come together and build the future of global finance. Smart contract devs, UI, UX, strategists, statisticians, designers, and artists - anyone can join and contribute (no matter your nationality, sex, or views). By investing in Beefy, you are investing in the idea that a group of highly technical individuals can safely, securely and creatively leapfrog the dinosaurs of traditional finance.

Timeline

Patents

Further Resources

Title
Author
Link
Type
Date

🎙 DeFi by Design EP67: Multichain Yield Optimization with Beefy Finance

Web

March 22, 2022

🥇How Beefy Finance Works: Best Farming Optimizer - Blockchain es

Web

November 19, 2021

ApeTV - 028 Beefy Finance

Web

December 10, 2021

...

References

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